Mexican Crude Supply Limited Amid Asia's Oil Diversification

Ongoing conflict between the US and Iran has disrupted global oil supply chains, driving prices up to $92.6/b, a 29.1% year-on-year increase.

Asian countries have sought alternative trade routes and suppliers across Latin America to mitigate these risks, but Mexico's capacity to capture market share remains limited by domestic refining mandates and restricted output.

Sinopec, China's state-owned oil firm, plans to increase crude purchases from Brazil, Africa, and other international sources to secure supply, despite maintaining long-term ties with key Middle Eastern suppliers.

Asian refiners are adapting to Strait of Hormuz disruptions by adjusting their procurement models and supporting alternative bypass infrastructure, with Chinese imports of Brazilian crude rising to 1.3MMb/d between January and May 2026.